Myth of Rs 10 NAV of a new mutual fund scheme
Sep 20, 09:09

NFOs sometimes get pushed heavily on the basis of Rs 10 NAV. All new scheme NAVs are available at Rs 10. The sales pitch is: why buy an existing fund whose NAV is, say, Rs 130, when you can buy a new scheme at just Rs 10. The push is to buy cheap and then make “handsome returns.” Myth. In reality, what matters is how much gains you make from the time you enter a scheme till you exit. NAVs move depending on how your fund manager performs. In fact, an existing scheme with a higher NAV indicates that it has been around and demonstrates track record.